re-rating, page-7

Just to remind everyone with interest, RCR on 8/12/10 stated:

RCR Financial Modelling: We have undertaken financial modelling of the Wonawinta Project based on
the optimisation study parameters, assuming lead recovery. Total capex of A$35m (incl. working capital)
assumed, and a mine life of 7.5 years given the large resource base and exploration potential. We have
discounted the project NPV (5% DR) by 30% to allow for pre-financing risk. Our base case modelling at
US$14.00/oz long term silver price (and A$/US$ = 0.80 long term) implies a NAV of A$0.45/share,
which rises to A$0.89/share factoring in current spot silver price of US$27.00/oz and A$/US$ = 0.98.
Corporate: CCU has confirmed an agreement with Magna Resources to raise A$6.5m through a two
stage placement at A$0.408/share, tranche 1 (A$3m) completed, tranche 2 (A$3.5m) subject to FIRB
approval. A very positive signal ? priced at a ~27% premium to the then (19 November) price of A$0.32.
Investment Comment: The recently announced placement at a premium from the major shareholder,
planning to increase its stake to 19.7% sends a positive signal about the project and ensures CCU will
have the cash to progress to project financing. Project economics suggest very attractive margins, and
despite recent strength, shares could be expected to continue to re-rate as a potential producer.
Assuming a positive ITR, our raised medium term target range is now A$0.50 to A$0.55/share.

Since then Ag spot price up from $US27 to $US31 at A/US of 1.01 almost 15% incr NAV to $1.02. Could I be correct?/
So what is this baby going to do?
Especially if silver/gold takes over fiat currencies. A concept we really cant get our heads around.